Daily Law Group
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Employee retention should be a primary business concern

Employers focus on sales as their sole means of generating revenue. They should also consider the financial value that trained, dedicated employees offer their companies.

Concentrating on the product or service you provide can bring success, indeed. But forgetting to focus on the people on your team can be detrimental. Whether you own a large business operation or manage a small group, you must think about how employee retention affects your overall goals.

What is the cost of employee turnover?

In some cases, there is no viable alternative to terminating an employment agreement. You may need to make a difficult staffing decision, regardless of whether a worker behaves unethically, violates policies or fails to meet performance standards.

However, there is an estimated $15,000 expense associated with each voluntary employee separation. The lack of employee retention cost employers $617 billion throughout the U.S. just last year. And in a competitive job market, you might expect those numbers to rise.

Fortunately, understanding why workers keep their options open can help you adjust the employee retention strategy in your workplace.

Why do employees consider other positions?

Retirement and relocation are circumstances over which employers have little to no control. Yet, you may be able to increase employee retention by focusing on workers’ needs and desires in areas which include:

  • Development. At 22% of employee turnover, career development and advancement opportunities remain the most significant reason why employees look elsewhere.
  • Balance. The desire for a work-life balance is the second-largest reason why employees call it quits. No matter how committed people are to their jobs, they have personal lives as well. At 12% of employee loss, you might reconsider scheduling by allowing commuting flexibility and work-from-home opportunities.
  • Management. Perhaps not surprisingly, employee treatment ranks third for worker loss. Unfortunately, situations often arise in which personnel feel management is unfair or unprofessional.

It may be tough to examine how your company rates with your workforce. However, determining where your opportunities lie could improve the overall employee experience within your company.

Over time, recognizing employee concerns and implementing management accountability initiatives could do more than merely reduce recruitment and training expenses. A respected, fulfilled employ will likely continue to drive productivity, contribute creative solutions and, ultimately, enhance customer satisfaction.

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